Banking sector drags FTSE MIB down as govt mulls support for banks

Italian banks dropped on Friday, dragging the benchmark FTSE MIB index lower as the government in Rome was reportedly considering a fund to support troubled banks. According to a report in Stampa, banks in the country were asked to provide updates on state bonds.

UniCredit lost 2.05% at 10:35 am CET, while Banco BMP was down 2.70% just moments later. Meanwhile, UBI Banca and Mediobanca tumbled 3.26% and 3.24% at 10:37 am CET, respectively. Banca Generali fell 2.47 at 10:39 am CET.

The FTSE MIB traded 1.64% in the red at 10:40 am CET. The euro was virtually flat against the United States dollar, going for 1.1376 at 10:57 am CET.

Baha Breaking News (BBN) / BM